Nike continues to face supply-chain disruptions and tight COVID restrictions in China, its second-largest market
Micron Q4 sales are expected to be at the low end of, or below, its previous guidance as customers reduce their stockpiles of unused chips
Paychex results to provide insight on the health of small and medium companies via its payroll data
Risks to global growth and stubbornly high inflation will continue to remain a key focal point in equity markets this week where there is little sign of reversal after a brutal selling spell to finish the summer.
New signs of slowing global growth hit all sorts of assets last week with renewed selling in both stock and bond markets. The Dow Jones Industrial Average fell to its lowest level of the year, the dollar surged, and short-term Treasury yields jumped.
It marked the fourth negative session in a row for stocks, after the US Federal Reserve on Wednesday raised the benchmark rates by 75 basis points and signaled that it hasn’t yet done with its .
As these volatile market conditions prevail, here are three stocks we're following closely—all will be announcing their latest earnings in the days ahead:
The sportswear giant Nike Inc (NYSE: NKE ) is scheduled to release its first-quarter fiscal 2023 earnings on Thursday, Sept. 29 after the market close. On average, analysts are expecting the sportswear giant to make $0.92 a share profit on sales of $12.29 billion.
In the previous quarter, Nike reported quarterly sales which were roughly flat as the world’s largest sportswear company continued to face supply-chain disruptions and tight COVID restrictions in China, its second-largest market.
Executives said they were optimistic for the current fiscal year because production has surpassed pre-pandemic levels and demand remains strong in North America and Europe. They forecast stronger revenue growth for the year started June 1, but said near-term profits would be hurt by elevated shipping costs.
Nike stock, which is down more than 40% this year, closed on Friday at $97.02.
2. Micron Technology
Chipmaker Micron Technology Inc (NASDAQ: MU ) will report fiscal 2022 fourth quarter earnings on Thursday as well, after the close. The storage chip manufacturer is estimated to have made $1.38 in profit per share on $6.81 billion in sales.
Micron, one of the top US makers of memory semiconductors, said last month that demand for its products is falling fast and its revenue wouldn't meet prior projections.
The company’s fourth-quarter sales are expected to be at the low end of, or below, its previous guidance as customers reduce their stockpiles of unused chips. There will be “significant sequential declines in revenue and margins,” Micron said in a regulatory filing, following similar warnings from other manufacturers, including Nvidia (NASDAQ: NVDA ) and Intel (NASDAQ: INTC ).
Micron stock closed at $50.10 on Friday, down about 46% for the year, underperforming the benchmark Philadelphia Semiconductor Index (SOX), which weakened 39% over the same period.
Investors will also focus on the latest quarterly earnings from Paychex Inc (NASDAQ: PAYX ), scheduled to be released on Wednesday, Sept. 28, ahead of the market open. The Rochester, New York-based payroll processing and human resources company is expected to report $0.9697 a share profit on sales of $1.18 billion.
Paychex, with 710,000 business clients in the US and North Europe, provides deep insight on the health of small and medium companies, their employment and wage trends, as well as impacts by sector.
Workers in small businesses continue to benefit from higher wages, according to the latest Paychex report, with average hourly earnings growth increasing to 5.18% in August, matching a record set in May 2022.
The stock closed on Friday at $115.02, down about 15% for the year. Despite this year’s weakness, PAYX is still up over 50% in the past two years, strongly recovering from the pandemic-induced slump.
Disclosure: The writer doesn’t own shares of the companies mentioned in this article.
Looking to get up to speed on your next idea? With InvestingPro+ you can find
- Any company’s financials for the last 10 years
- Financial health scores for profitability, growth, and more
- A fair value calculated from dozens of financial models
- Quick comparison to the company’s peers
- Fundamental and performance charts
And a lot more. Get all the key data fast so you can make an informed decision, with InvestingPro+. Learn More »
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.